Planning a Move to the UK?
Here’s How the 2026 Earned Settlement Reform Could Reshape Your ILR Pathway

The UK Government’s 20 November 2025 consultation introduces the Earned Settlement framework – an overhaul that shifts ILR from a predictable 5-year process to a performance-based, multi-criteria system. While still formally under consultation, the government’s explicit signalling makes early implementation in April 2026 highly probable.

This reform directly affects Skilled Workers and long-term migrants, who form a significant proportion of the UK’s economically active migrant population.

The new model restructures settlement eligibility around evaluative criteria rather than time served. Key components include:

A substantial departure from the current 5-year standard. Visa categories that are likely to be considered for extended timelines include:

• Skilled Worker
• Health & Care Worker
• Global Business Mobility routes
• Innovator Founder (standard route)
• Long-term temporary migrants transitioning to ILR

Applicants may be assessed on:

• Economic contribution: stable employment, tax compliance, earnings
• Immigration compliance: adherence to visa conditions
• Good character conduct: criminality, civil penalties, public order
• Integration markers: language, community linkages (to be defined)

This shifts ILR from a transactional timeline to a merit-screened pathway.

The following categories will retain the 5-year ILR timeline:

• Partners of British citizens
• Hong Kong BNO visa holders
• EU Settlement Scheme beneficiaries (per Withdrawal Agreement)

The government is considering exemptions for:

• Victims of domestic abuse
• Children who grew up in the UK

No wider exceptions are proposed.

The consultation states:

Implications for migrants:

• Those reaching 5 years in 2026, 2027, or 2028 may face one or two additional extensions.
• Likely to incur extra costs: visa fee, IHS surcharge, lawyer fees, employer sponsorship charges.
• Dependant family members incur parallel cost increases.
• Transitional protections may be extremely limited.

This is the most consequential shift for current Skilled Workers.

If you are a high income earner in last 3 Years Before ILR

• Earn £125,140+ per year → You can settle in 3 years
• Earn £50,270+ per year → You can settle in 5 years

Strong English (C1 Level)

• C1 English ability → Settle in 9 years

Public Service Occupations

• Work in an eligible public service job for 5 years → ILR in 5 years

Volunteering & Community Work

• Verified community service → ILR in 5–7 years

Global Talent & Innovator Founder

• 3 continuous years in the UK → Minus 7 years → ILR in 3 years

There are large number of Skilled Workers and Health and care workers, and many operate on tight ILR timelines dependent on consistent employment, sponsor stability, and financial planning.

These reforms introduce three new risks:

A. Timeline Volatility
Grant dates that were previously predictable may now shift by 1–3 years.

B. Employment Dependency Intensifies
A longer pathway increases vulnerability to:

• sponsor licence lapses
• redundancy
• role changes
• salary deviations
• company restructuring

C. Cost Burden Multiplies
Each additional extension triggers:

• IHS surcharge (potentially > £1,035per person per year by 2026)
• Visa fees
• Legal and documentation costs
• Employer involvement

For families of 3–4, this becomes a major financial reconsideration.

1. Conduct an ILR Timeline Audit
Identify your ILR due date under:

• the current 5-year rule
• the proposed 6–8 year rule

This allows for early strategic action.

2. Assess Eligibility for Faster Settlement Routes
Some migrants can switch to:

• Partner/Spouse routes
• Accelerated ILR categories (where applicable)
• Alternative qualifying pathways

3. Initiate Extensions or Switching Before April 2026
This may lock your ILR trajectory under legacy rules.

4. Strengthen Your Documentation File
If ILR becomes merit-based, gaps in tax, PAYE, employment continuity, or compliance could become disqualifying.

The Earned Settlement proposal is a major restructuring of the UK’s immigration landscape. The likelihood of implementation is high, and the effects will be felt most acutely by Skilled Workers.

Migrants who plan now – rather than wait for final rules – will retain the highest degree of control over their ILR journey.

The SmartMove2UK will continue to monitor updates and provide personalised advisory for ILR strategy planning ahead of 2026.

If you are unsure about how the rules affect you or would like to get a better understanding of proposed changes, you can book a consultation with our UK visa experts.